Marketing: Part One (Vocabulary and Concepts) (Video 4 Part 2)

Welcome to English for Business and Entrepreneurship, a course created by the University of Pennsylvania, and funded by the U.S. Department of State Bureau of Educational and Cultural Affairs, Office of English Language Programs.
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This course is designed for non-native English speakers who are interested in learning more about the global business economy. In this course, you will learn about topics and language necessary to succeed in the international workplace. You will explore business English through authentic readings and video lectures, while learning about business vocabulary, concepts, and issues. Unit 1 will provide an introduction to entrepreneurship by examining ideas, products, and opportunities. In unit 2, you will learn about the basics of market research, including how to identify an opportunity. The next unit in the course will focus on business plans, why these plans are important, and will give you a chance to practice composing a business plan. In the final unit of the course, we will present basics for funding a business and will help you create a persuasive presentation, or pitch, based on a business plan.
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강사:

Amy Nichols

Manager of International Research and Program Development

James Riedel

Executive Director

스크립트

The second P, Price describes the amount of money that people will pay for a product. For many products, the price people pay is related to what it costs for the business to provide that product. The difference between the price and the cost is profit. Profit is money that a business earns above what it costs to produce and sell goods and services. A Profit Margin is the amount that is made in a business after the costs have been subtracted. And is usually expressed as a percent. For example let's imagine there is a shoe store that wants to earn a 40% profit margin on each pair of shoes. The cost to the business of producing each pair of shoes including materials manufacturing, employees, and other expenses is $15. If the business charges $25 for each pair of shoes, the profit is the price, $25, minus the cost, $15, which equals $10. The profit margin for a pair of shoes is the profit $10 divided by the price $25, which is 40%. For this example business, the price of shoes is set to provide a 40% profit margin. Businesses might also consider how much people are willing to pay for their products as well as the price their competitors are charging for the same products. Usually, the more competitors there are in a market, the lower the prices will be for a product. Examples of this depend on where you live in the world. Oil may cost less in some markets, because there is a lot available. In another market, water may cost less, because there is a lot available. The reverse is also true. If there are no competitors offering a product, and many people want the product, a business can charge a higher price and make more profit. This is true in most markets for gold and diamonds. We will learn more about competitive analysis in video 5. Remember, businesses think about their cost when they choose a price for their product. But that price is also a marketing decision related to competitor prices and market need. In other words, how much people are willing to pay for the product. Here is a comprehension check about these first two p's.